Douglas Wilson Cos. JV Buys 2.5 Acres in Tempe
- Nov 03, 2014
Hayden House Tempe, L.L.C., a partnership between Douglas Wilson Companies, Hensel Phelps Development L.L.C., and Karlin Real Estate, has acquired 2.51 acres in Tempe, Ariz., from Michael Monti’s Catering.
The site sits on the southwest corner of Mill Avenue and Rio Salado Parkway and is home to the historic Hayden House, the oldest continuously occupied structure in Metropolitan Phoenix and Arizona, built approximately 145 years ago.
The joint venture plans to develop Mill & Rio Salado, a $200 million mixed-use creative office and lifestyle-hotel development, which will consist of two towers: a 15-story 280,000-square-foot Class A office building and a 16-story, 274-key Kimpton hotel along with 17,000 square feet of complimentary restaurants and retail.
“The commercial office market requirements and the need for a four star boutique hotel was very evident,” Doug Wilson, Douglas Wilson Cos.’ chairman & CEO, told Commercial Property Executive. “We saw this property as an opportunity to support the current and future market needs and to provide a world class project for the city of Tempe.”
As part of the plan, the Hayden House will be preserved and repurposed as a destination restaurant to serve the Valley and the surrounding office and hotel guests.
The Mill & Rio Salado site is located less than a block from Phoenix’s acclaimed light rail system, across the street from Tempe Beach Park and Tempe Town Lake.
North Tempe has emerged as one of the most desirable submarkets in the Valley, boasting the lowest vacancy rates in Metro Phoenix, with a Class A vacancy rate under 5 percent. Real estate leaders cite access to ASU, Light rail, freeways, walk able amenities, and true Class A office space as the leading reasons Tempe is experiencing such dynamic attention from office tenants.
“As the entire valley continues to grow up and the requirements of today’s employers and their employees become more urban, Tempe is the perfect place for this,” Wilson added. “The innovation coming out of ASU, the quality employment base in the surrounding Tempe area and the current and new supply of urban housing are some of the top drivers.”
According to Wilson, the joint venture is dedicated to creating quality-driven and viable urban infill developments.
“DWC was founded on this and has a proven track record of creating these environments in great cities such as Tempe,” he concluded.
Hensel Phelps has been selected as the contractor for Mill & Rio Salado and construction is expected to start in mid-2015 with completion in 2017.
Cassidy Turley represented the seller in the transaction. Karlin Real Estate also provided the debt in the transaction.